What net worth actually measures
Net worth is everything the family owns minus everything it owes, valued today. It is the only number that moves when you clear a loan, and the only one that cannot be flattered by a good month of income.
The calculation
Add the current value of everything you own — property, gold, deposits, funds, shares, provident fund, vehicles. Subtract everything you owe — home loan, car loan, personal loans, gold loans, the credit card balance you are carrying. The difference is net worth. Not income, not savings, not the value of the house. The difference.
Why it beats every other number
Income can rise while net worth falls, if the extra income arrives with a larger EMI attached. Savings can look healthy while a credit card quietly grows. Net worth is the only figure that captures both sides at once, which is why it is the one worth tracking over years rather than months.
What a healthy trend looks like
Rising, and rising for the right reason. A net worth that climbs because a property was revalued upwards is not the same as one that climbs because loans are being cleared and investments are being funded. Look at what moved, not just the total.
Where FamTally comes in
FamTally does this for you: every asset and loan in one place, tagged to the family member who holds it, valued at today's figures, with net worth tracked as a running number the whole family can see. Add the AI assistant and you can simply ask what changed and why. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
How do I calculate my net worth?
Add the current value of everything you own, subtract everything you owe. The difference is your net worth.
Is a negative net worth a disaster?
Not by itself. A young household with an education loan and a home loan is often negative on paper and doing perfectly well. The trend matters more than the sign.
Does income count?
No. Income is a flow; net worth is a stock. What you earn only affects net worth to the extent that it stays.